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Business cycle dynamics in a small open economy

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  • Valerie Cerra
  • Sweta Saxena

Abstract

This article combines common factor extraction techniques with permanent and temporary regime switching to analyse Chile's business cycle fluctuations. We find asymmetries across business cycle episodes as well as within the cycle.

Suggested Citation

  • Valerie Cerra & Sweta Saxena, 2008. "Business cycle dynamics in a small open economy," Applied Economics Letters, Taylor & Francis Journals, vol. 15(15), pages 1153-1157.
    • Handle: RePEc:taf:apeclt:v:15:y:2008:i:15:p:1153-1157
    DOI: 10.1080/13504850601018031
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    References listed on IDEAS

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    3. Kim, Chang-Jin & Piger, Jeremy, 2002. "Common stochastic trends, common cycles, and asymmetry in economic fluctuations," Journal of Monetary Economics, Elsevier, vol. 49(6), pages 1189-1211, September.
    4. Hamilton, James D, 1989. "A New Approach to the Economic Analysis of Nonstationary Time Series and the Business Cycle," Econometrica, Econometric Society, vol. 57(2), pages 357-384, March.
    5. Nelson, Charles R. & Plosser, Charles I., 1982. "Trends and random walks in macroeconmic time series : Some evidence and implications," Journal of Monetary Economics, Elsevier, vol. 10(2), pages 139-162.
    6. Nilss Olekalns, 2001. "Cyclical asymmetries in Australian macroeconomic data," Applied Economics Letters, Taylor & Francis Journals, vol. 8(3), pages 145-148.
    7. Chang-Jin Kim & Christian J. Murray, 2002. "Permanent and transitory components of recessions," Empirical Economics, Springer, vol. 27(2), pages 163-183.
    8. Ahmed Alyousha, 1997. "Investigating Bahrain business cycles," Applied Economics, Taylor & Francis Journals, vol. 29(1), pages 43-50.
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